NAGARPALIKA THAKURDWARAversusKHALIL AHMED & ORS.

                               [2016] 7 S.C.R. 912



A                    NAGARPALIKA THAKURDWARA
                                         v.
                          KHALIL AHMED & ORS.
                        (Civil Appeal No. 9822 OF 2016)
B                            SEPTEMBER 28, 2016
           [ANIL R. DAVE AND L. NAGESWARA RAO, JJ.]
            Code of Civil Procedure, 1908:
            s.102 - Applicability of - Respo11dents, claiming to reside
c   outside the mu11icipal limits of appe/lant-Nagar Palika filed suit
    seeking permane11t i11ju11ction agai11st appellant-Nagar Palika from
    recovery of house tax (less tha11 Rs.25,0001-), thus impliedly praying
    for a declaration that they were 11ot liable to pay a11y tax to appellant-
    Nagar Palika - Suit dismissed by trial court - First appeal by
    respo11dents allowed - Second appeal by appellant-Nagar Palika
D   dismissed by High Court holdi11g that claim i11 the seco11d appeal
    was less tha11 Rs.25,0001- a11d thus by virtue of provisio11s of s.102
    110 seco11d appeal would lie whe11 the subject matter of the original
    suit was for recovery of money 11ot exceedi11g Rs,25,0001- - 011
    appeal, held: To avail advantage of s. l 02, subject matter of the
E   origi11al suit should be only recovery of money not exceeding
    Rs.25, 0001- - If the. subject matter of the suit is anything other than
    recovery of mo11ey, s. l 02 cannot be invoked - 111 the i11sta11t case,
    the suit was not only for recovery of money but was for per111a11e11t
    i11ju11ctio11 and a dec/aratio11 also - Provision of s. l 02 11ot applicable
    - Matter remitted to High Court for fresh co11sideratio11 - · Uttar
F   Pradesh Municipalities Act, 1916.
            s.102 - Purpose behi11d enactment - Held· To reduce quantum
    of litigation so that courts may not have to waste time where stakes
    are very meagre and not of much consequence.
           Allowing the appeal, the Court
G
          HELD: 1. In the instant case, the suit was not only for
    recovery of money, but it was for a declaration and permanent
    injunction. [Para 13] [915-G)
          2. So as to avail advantage of the provisions of Section 102
    of the CPC, the subject matter of the original suit should be only
H
                                        912
NAGARPALIKA THAKURDWARA v. KHALIL AHMED & ORS. 913


recovery of money and that too, not exceeding Rs.25,000/-. If                   A
the subject matter of the suit is anything other than recovery of
money or something more than recovery of money, provisions of
Section 102 of the CPC cannot be invoked. In view of the
aforestated fact, the provisions of Section 102 of the CPC could
not have been ap1>lied. [Paras 15, 16) [916-D-E]
                                                                                B
      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 9822
of2016.
      From the Judgment and Order dated 21.09.2011 of the High Court
of Judicature at Allahabad in Second Appeal Civil Appeal No. 781 of
2011.
                                                                                c
      Aniket Jain, Saurav Aggarwal, Kamlendra Mishra, Advs., for the
Appellant.
      Gaurav Jain, Ms. Abha Jain, Advs., for the Respondents.
      The Judgment of the Court was delivered by
      ANIL R. DAVE, J. I. Leave granted.                                        D
       2. Being aggrieved by the Judgment dated 21.9.2011 delivered by
the High Court of Judicature at Allahabad in Second Appeal No.781 of
2011, the appellant Nagar Palika has approached this Court by way of
this appeal.
      3. The facts giving rise to the present litigation in a nutshell are as   E
under:
       The respondents, who claim to be residing outside the municipal
limits ofNagar Palika Thakurdwara, Distrid Moradabad, filed a Civil
Suit being OS No.13 of 1994 against the appellant in the court of Civi I
Judge (Junior Division), Thakurdwara, praying for the following reliefs:        F
      "(a) That the defendant no. I be restrained by decree of permanent
      injunction that they remain restrained from recovery of alleged
      house tax of Rs.6760/- regarding crusher in question, present
      building no.319 and calendaring factory building no.320 and shops
      in question, building no.321 to 332 respectively which are outside        G
      the limits of municipality and situated in village Fatehullah Ganj in
      property owned by Plaintiff nos.2 and 3 situated in village
      Fatehullah Ganj and from recovery of Rs.4,246.07 amount
      described in the recovery certificate or more by itself or its agent
      defendant no.2 or by any other medium or be restrained from
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914             SUPREME COURT REPORTS                           (2016) 7 S.C.R.


A           imposing any house tax till the pronouncement of the properties in
            question to be within the limits of municipality by the Government
            in either years.
            (b) That the defendant no.1 be ordered to give the cost of the
            present suit to the plaintiff(s).
B           (c) Thatthe relief which is fit in the opinion of the Hon'ble Court
            in favour of the plaintiff(s) be granted."
             Thus, the case of the respondents was that their premises were
      not within the municipal limits of the appellant Nagar Palika and therefore,
      the Nagar Palika had no right to levy any tax on the said prope1ties of
c     the respondents and therefore, the appellant be restrained from recovering
      tax in respect of the said properties from the respondents. The
      respondents had also impliedly prayed for a declaration to the effect that
      they were not liable to pay any tax to the appellant Nagar Palika under
      the provisions of the Uttar Pradesh Municipalities Act, 1916 (hereinafter
      referred to as 'the Act').
D
             4. Written Statement was filed by the appellant stating that the
      premises of the respondents were very much within the municipal limits
      of the Nagar Palika and the said fact was also known to the respondents
      as respondent no. I had also contested an election for being a President
      of the appellant Nagar Palika. Moreover, it was also the case of the
 E    appellant that the suit was not maintainable in view of the provisions of
      Sections 143 and 160 of the Act.
             5. The said suit was dismissed and therefore, the respondents
      preferred first appeal, being Civil Appeal No.30 of2008, before the Court
      of Additional District Judge, Moradabad, which was allowed by a
F     judgmentdated 19.7.201 l.
            6. Being aggrieved by the aforesaid judgment dated 19. 7.2011,
      the appellant filed Second Appeal No. 781 of 2011, which has been
      dismissed by the High Cou11 by virtue of impugned judgment and
      therefore, this appeal has been filed by the appellant.
G           7. The short reason for which the appeal filed by the appellant
      has been dismissed by the High Court is that the claim in the second
      appeal was less than Rs.25,000/- and by virtue of the provisions of Section
      102 of the Code of Civil Procedure, 1908, no second appeal would lie
      from any decree when the subject matter of the original suit is for
H     recovery of money not exceeding Rs.25,000/-.
NAGARPALIKA THAKURDWARA v. KHALIL AHMED & ORS.                                 915
                [ANIL R. DAVE, J.]

       8. The learned counsel appearing for the appellant submitted that       A
the High Court committed an error by not considering the fact that the
suit had been filed seeking permanent injunction, praying that the appellant
Nagar Palika should be restrained from recovering any tax under the
Act from the respondents as the properties belonging to the respondents
were situated beyond the municipal limits of the appellant Nagar Palika.
                                                                                B
        9. The learned counsel further submitted that the High Court only
considered the amount of tax which was payable at the relevant time,
which was only Rs.11,006.07, but ig1i'ored the fact that the suit was also
for a declaration to the effect that the properties of the respondents
were not within the municipal limits of the Nagar Palika and therefore,
no tax could have been levied thereon by the appellant. Thus, the suit
                                                                                c
was not only for recovery of money, but was also for a declaration and
permanent injunction. Moreover, it was also submitted that the suit itself
was not maintainable in view of the provisions of Sections 140 and 163
of the Act and therefore, the appeal could not have been allowed by the
first appellate court.                                                          D
       10. On the other hand, the learned counsel appearing for the
respondents submitted that the impugnedj udgment isj ust, legal and proper
for the reason that by virtue of the second appeal filed by the appellant,
the appellant wanted to recover only a sum of Rs.11,006.07 by way of
tax from the respondents. The learned counsel, therefore, submitted             E
that the second appeal deserved to be dismissed.
       11. Upon hearing the learned counsel and looking at the facts.of
the case and in the light of the legal provisions, we are of the view that
the High Court ought not to have dismissed the second appeal.
         12. Section l 02 of the Code of Civi 1 Procedure, 1908, reads as       F
under:
       "102. No second appeal in certain cases. - No second appeal
       shall lie from any decree, when the subject matter of the original
       suit is for recovery of money not exceeding twenty-five thousand
       rupees".
                                                                                G
       13. In the instant case, the suit was not only for recovery of money,
but it was for a declaration and permanent injunction. Moreover; the
issue with regard to location of the properties in question had to be
decided. It was to be ascertained whether the properties were situa~ed
within the municipal limits of the Nagar Pa.lika and if so, whether the
appellant was entitled to levy tax thereon under the provisions of the          H
916             SUPREME COURT REPORTS                           (2016] 7 S.C.R.


A     Act. If the properties were not within the municipal limits of the appellant
      Nagar Palika, the appellant could have been permanently restrained from
      recovering any tax under the Act in respect of the properties in question.
      Thus, several other issues were also to be decided in the said suit. It is
      also pertinent to note that the maintainability of the suit was also
      challenged by the appellant in view of the provisions of the Act.
B
             14. The purpose behind enactment of Section I 02 of the CPC is
      to reduce the quantum of litigation so that courts may not have to waste
      time where the stakes are very meagre and not of much consequence.
      In the instant case, though apparently the amount which was sought to
      be recovered was Rs.11,006.07, looking at the prayer made in the plaint,
c     the consequences of the final outcome of the litigation would be far-
      reaching.
             15. So as to avail advantage of the provisions of Section 102 of
      the CPC. the subject matterofthe original suit should be only recovery
      of money and that too, not exceeding Rs.25,000/-. If the subject matter
D     of the suit is anything other than recovery of money or something more
      than recovety of money, provisions of Section I02 of the CPC cannot be
      invoked.
            16. In the instant case, the original suit was not only for recovery
      of money, but was also for a declaration and permanent injunction. In
 E    view of the aforestatcd fact, the provisions of Section I 02 of the CPC
      could not have been applied.
            17. In the circumstances, we set aside the impugned judgment
      and remit the matter to the High Cowi so that the Second Appeal can be
      decided afresh after hearing the parties concerned.
 F
              18. As the suit was filed in the year 1994 and possibly no tax
      might have been recovered by the appellant ti II now, we feel that the
      second appeal should be decided at an early date. The parties to the
      litigation shall appear before the High Court on 17.10.2016 and the High
      Court is requested to fix the date for final hearing of the second appeal
 G    so that the appeal can be finally decided preferably within six months
      from the date of receipt of a copy of this judgment by the High Cami.
             19. The appeal is, accordingly, dis posed of as allowed with no
      order as to costs.
      Divya Pandey                                                 Appeal allowed.
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